Castle Rock Water Commission

Todd Warnke, Chair Amy Blackwell, Vice Chair Castle Rock Water Commission Ernie Foerster Meeting Minutes Clark Hammelman Don Trujillo Katherine Redmond John Wright Wednesday, August 28, 2019 6:00 PM Castle Rock Water 175 Kellogg Ct., Bldg. 183 Castle Rock, CO 80109 This meeting is open to the public. Three or more Council members may also attend this meeting, during which the items listed herein will be discussed CALL TO ORDER / ROLL CALL Present 6 - Clark Hammelman, Ernie Foerster, Chair Todd Warnke, Vice Chair Amy Blackwell, Don Trujillo, and John Wright Not Present 1 - Katherine Redmond Attendance 5 - Caryn Johnson, Mark Marlowe, Tim Friday, Matt Benak, and Melinda Pastore COUNCIL UPDATE Council Member Johnson updated the commission on recent council actions. COMMISSION COMMENTS Vice Chair Blackwell asked for an update regarding a Castle Rock Water Commissioner serving on the Planning Commission's Board. Mr. Marlowe replied he would follow up on this topic at the September commission meeting. Commissioner Foerster inquired about water usage and revenue. Mr. Marlowe said water use has been high in August, and it looks like Castle Rock Water will fully recover from the revenue shortfall in June and July. The downside is that the wells aren't getting to rest much. From a water supply standpoint, Castle Rock Water is in good shape. Commissioner Wright completed three out of four educational classes on water fluency. He recently toured Aurora's water facility. Chair Warnke will be attending Sustaining Colorado Watershed's conference this October in Vail. The theme this year is the human element in watersheds. ADMINISTRATIVE BUSINESS WC 2019-077 Approval of the July 24, 2019 Meeting Minutes It was moved by Vice Chair Blackwell and seconded by Commissioner Foerster to approve the July 24, 2019 minutes. Yes: 6 - Hammelman, Foerster, Chair Warnke, Blackwell, Trujillo, and Wright Castle Rock Water Commission Meeting Minutes August 28, 2019 Not Present: 1 - Redmond ACTION ITEMS (HIGH PRIORITY / TIME CRITICAL) WC 2019-078 2019 Annual Rates and Fees Study Town Council Agenda Dates: Sept. 3 & 17, 2019 Mr. Marlowe presented a couple of changes that were made to the proposed 2020 rates and fees since the commission's last discussion on this topic. For example, a proposed increase to "water" went from three percent to zero. With changes made to the capital plan, three percent is not necessary. A three percent decrease is being proposed for "wastewater". Additional time was spent looking into debt financing for the stormwater fund. Staff is recommending getting stormwater legacy projects caught up within a five year window. A primary goal of the annual rates and fees study is to evaluate the long-term financial plan for Castle Rock Water to ensure that future rates and fees will cover the future costs of service. In response to a commissioner question as to whether or not recent issues in Brighton have influenced anything, Mr. Marlowe replied that Castle Rock Water does this each year (rates and fees study and analysis). Unlike Brighton, we are currently projecting out to the year 2055 to make sure fund balances are appropriate and rates are raised incrementally. Commissioner Trujillo asked if the water department pays the Town for its use of computers, etc. Mr. Marlowe explained that the water enterprise pays the Town for services such as Human Resources, Facilities, DoiT (information technology), Legal, etc. This is incorporated into an annual fee Castle Rock Water pays into the general fund (roughly $1M per year). The fee is incorporated into the water rates and fees. Mr. Marlowe presented a chart, which showed that Castle Rock Water is becoming more competitive with other area water providers. It was moved by Commissioner Blackwell and seconded by Commissioner Wright to recommend Town Council approval of the proposed 2020 rates and fees, as presented. Yes: 6 - Hammelman, Foerster, Chair Warnke, Blackwell, Trujillo, and Wright Not Present: 1 - Redmond WC 2019-079 2019 Binney Connection Fee and the Meridian Title Clean-up Fee for the WISE Project Town Council Agenda Date: Sept. 3, 2019 This item is to authorize payment of Castle Rock Water's portion of the 2019 Binney Connection Fee and the Meridian Title Clean-up Fee for the WISE Project. This is required through our 2013 water delivery agreement for the WISE Project. The Binney Connection, which is located at Aurora's Binney facility at Aurora Reservoir will be a big pipeline, going through a residential area and includes a pump station and disinfection facility. The total estimated cost for Castle Rock for the Binney Connection is $6.6 million. Castle Rock has paid $395,294 to-date. Castle Rock Water Commission Meeting Minutes August 28, 2019 This request will authorize payment of the Town's portion of the 2019 Binney Connection Fee ($788,708), as well as the Town's portion of the Meridian Title Clean-up Fee ($59,307). The remaining costs of the Binney Connection will be collected by the South Metro WISE Authority in 2020. The project needs to be built next year to meet our commitments under the water delivery agreement. Council Member Johnson asked if a year and a half will be enough time to complete the project. Mr. Marlowe replied that he believes it will be enough time. The WISE Authority will request bids late this year, then start construction. Aurora has been a good partner to work with, and would likely agree to an extension in the unlikely event one is needed. It was moved by Commissioner Blackwell and seconded by Commissioner Hammelman to recommend Town Council approval of the 2019 Binney Connection Fee and the Meridian Title Clean-up Fee for the WISE Project, as presented. Yes: 6 - Hammelman, Foerster, Chair Warnke, Blackwell, Trujillo, and Wright Not Present: 1 - Redmond WC 2019-080 Cherry Creek Water Rights Purchase and Sale Agreement Town Council Agenda Date: Sept. 17, 2019 Castle Rock Water is seeking council approval to purchase interest in the Cherry Creek Project Water Authority (CCPWA) currently held by the Arapahoe County Water & Wastewater Authority (ACWWA). This purchase would allow the Town to gain access to additional water rights without a lengthy water court process, increasing the Town's water supply potential in Rueter-Hess Reservoir and improving the overall quantity of renewable water. The CCPWA is reviewing the draft agreement. Once the agreement is finalized this will be ready to go to council. Vice Chair Blackwell moved to recommend to Town Council approval of the Cherry Creek Water Rights Purchase and Sale Agreement, as presented. The motion was seconded by Commissioner Foerster. Yes: 6 - Hammelman, Foerster, Chair Warnke, Blackwell, Trujillo, and Wright Not Present: 1 - Redmond DIRECTOR FOLLOW-UP AND INFORMATIONAL / UPDATE ITEMS WC 2019-678 Household Chemical Roundup Event on Sept. 21, 2019 Mr. Marlowe announced that the annual Douglas County Household Chemical Roundup event will be held at Castle Rock Water on Saturday, Sept. 21, 2019, from 9:00 a.m. until 3:00 p.m. The Tri County Health Department is in charge of this event. Next year the event will probably be held at the Douglas County Fairgrounds, as Castle Rock Water will not have the required space once the new administrative building is built. COMMISSIONER MEETING COMMENTS Mr. Marlowe updated the commission on the ColoradoScape contest, whereby residents had an opportunity to win an $8,000 ColoradoScape, water-wise Castle Rock Water Commission Meeting Minutes August 28, 2019 makeover for their front yard. To enter the contest, residents needed to post a 15 to 30-second video on social media and tag @CRgov by Thursday, Aug. 15. The top five entries were placed online for the community to vote for the winner. Vice Chair Blackwell gave kudos to Castle Rock Water staff. Chair Warnke asked how Mr. Marlowe is getting along without an Administrative Assistant, as Carolyn Richards recently retired. Mr. Marlowe said that Melinda Pastore and Dawn Tiffany have been filling in, and a new Administrative Assistant is scheduled to begin on September 9th. The meeting was adjourned at 7:30 p.m.